JeffGreenberg

stock agencies owned by private equity firms

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How can one find out which are...?

And especially, are they pursuing wealth in this manner:

http://www.cnn.com/2017/09/28/opinions/toys-r-us-risk-making-macintosh-opinion/index.html

 

Stock shooter = suppliers, & get hurt when agency declares bankruptcy;

What are earliest signs an agency is headed towards bankruptcy...?

Repeatedly late payments?  What else?

Not obsessed with this topic, but CNN article triggered concern...

Edited by JeffGreenberg

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Jeff's main question is beyond me as well. However, having dealt with a couple of agencies that went belly-up, I can say that sudden secretiveness (i.e. reluctance to answer questions) and lack of transparency about financial matters are usually good signs that things aren't going well.

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I have been through one agency offer to photographers. 21 cents on the dollar for 1.5 years of unpaid royalties. In my case it was less than a month, because I terminated relationship for none payment performance. Many stuck with 1.5 years, some big amounts. Offer was accepted by majority of photographers, and pulled everyone else along.

 

First sign is when agencies fail to adapt to the marketplace. They have no new image manager software, RM only, prices too high, no new managers from outside, no special deals, no out of home country offices, no distribution network, no POD, fail to develop new markets. 

 

Second sign is when agencies start to miss royalty payments. Should terminate at that point. Could be any agency. Private equity firms have nothing to do with it.

Why do you ask?

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15 hours ago, Bill Brooks said:

Why do you ask?

 

BillB & all,

 

Read OP link, which starts with:

 

"the iconic retailer went bust because a group of private equity firms used it as a toy in a game of "Borrow, Overpay and Pray." They lost the game, broke the toy and have now moved onto other things while the little people (the employees and suppliers) are left to suffer"

 

Just substitute "stock agency" for "toy retailer"...

Was hoping to get responses from those familiar with behavior of private equity firms...

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On 29/09/2017 at 16:17, Bill Brooks said:

It’s hubris on the part of the private equity firms. They do not do it intentionally.

I would disagree with that statement, but maybe I worked with and for PE for too long in a previous life.

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On 29/09/2017 at 00:06, JeffGreenberg said:

How can one find out 

What are earliest signs an agency is headed towards bankruptcy...?

Repeatedly late payments?  What else?

When accounts tell you that the CEO needs to approve a £150 payment and that he's currently on holiday. 

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